Worldpay from FIS strives to ensure that the summaries and information contained within this newsletter are as accurate as possible. This information should

not be considered legal and may vary based upon your individual business needs. The information contained within this newsletter is not a substitute for

Network rules, regulations, or applicable laws.

Merchant Network Updates

Fall 2019

We are committed to working closely with you to achieve your business goals. As a part of this commitment,

we carefully monitor network changes and summarize them for your convenience. This communication serves

as a summary of information from American Express, Discover® POINT OF SALE Network, Mastercard

®

Worldwide and Visa® U.S.A. outlining changes to operating rules and regulations, interchange rates,

compliance of network mandates, and other industry updates that may impact your business.

Except where otherwise noted, the changes described in the articles will be effective October 18, 2019, central

processing date of October 19, 2019. Please contact your Relationship Manager with any questions you may

have regarding any of the information contained in this network updates newsletter.

ALL BRANDS

[UPDATE] Return Authorization Requirements, All Brands CP/CNP/eComm

The Program: To ensure better visibility to the cardholder that their refund is in process, and to reduce refund-

related customer service burdens on merchants, acquirers, and issuers, the brands have communicated the

following refund authorization support and effective dates.

The Change: Visa, Discover, and Mastercard will require acquirers and merchants to submit credit/refunds for

authorization.

Update – Implementing Return Authorization Support

Visa: Based on results from the Sept 3 test when we started sending returns out to the networks for authorization, and based on Visa’s requirement date of October 18 for merchants, Worldpay plans to turn support back on for Visa transactions effective November 4*.

Mastercard/Discover: Due to the anticipated high volume of returns from merchants in January, and the results of the Sept 3 testing, Worldpay will not implement code for Discover or Mastercard until February 2020, which is still in advance of the April 2020 requirement.

* Worldpay will notify Visa of the November 4 date

Update – Visa Addresses Rejects

Worldpay identified a number of Visa return transactions approved with a response code ‘85’ – No reason to decline. Merchants should note that response code ‘85’ is a valid approval response and support this value accordingly.

Visa will stop rejects for credit voucher and merchandise return authorization requests in the MCCs below:

MCC Description 4829 Money Transfer

6012 Financial Institutions—Merchandise, Services, and Debt Repayment

6051 Non-Financial Institutions—Foreign Currency, Non-Fiat Currency

(for example: Cryptocurrency), Money Orders (Not Money Transfer), Travelers Cheques, and Debt Repayment

6540 Non-Financial Institutions—Stored Value Card Purchase / Load

7511 Truck Stop

7995 Betting, including Lottery Tickets, Casino Gaming Chips, Off-Track Betting, and Wagers at Race Tracks

2

[UPDATE] Return Authorization Requirements, All Brands (cont.) CP/CNP/eComm

Update – Network Fees

With the change to authorize return transactions, additional network fees will start to be assessed to returns:

Discover: Authorization fee of $0.0025 will apply to credit/refund authorization requests.

MasterCard: The NABU fee ($0.0195) will not apply to return transactions submitted for authorization.

Visa: No changes

Brand Mandated Effective

Dates Exclusions

Proc Code

Required Chargebacks Fees

Visa

October 19, 2019

U.S.

Canada

LAC April 2020

AP

CEMEA April 2020

Europe (exception 2022 for the UK and Republic of Ireland)

Airlines (MCCs 3000–3350 and 4511)

20 April 18, 2020 July 1, 2020

Mastercard April 17, 2020 Airlines (MCCs 3000–3350 and 4511)

20 April 17, 2020

Discover April 17, 2020

20 April 17, 2020

3

EMV

[REMINDER] U.S. EMV Terminal Requirements to Ensure Interoperability with

Canada-Issued co-badged Cards CP

The Program: Canada-issued co-badged debit and credit cards contain both the Visa application identifier

(AID) and the Interac AID. Previously the Application Selection Flag (ASF) logic was used in terminal

deployments, and when Canadian issued co-badged cards were used the transactions would fail or fallback to

magnetic stripe (and in some cases lead to counterfeit fraud), creating a disruptive cardholder experience. As

a result, Visa required acquirers and vendors in the U.S. that did not accept the Interac AID to disable the logic

from the terminals.

The Change: To ensure U.S. EMV terminals can properly originate transactions from Canada-issued co-

badged credit and debit cards, Visa is reminding U.S. terminal operators that do not accept the Interac AID that

they should disable the ASF logic.

For U.S. terminals that support both the Visa and Interac AIDs, the following logic must be implemented to

ensure proper interoperability with Canada-issued co-badged debit and credit cards:

Generate the Candidate List using the List of AIDs or the Payment Systems Environment (PSE).

Point of Sale: If the Interac AID and the Visa AID are present on the same card, drop the Interac AID

from the Candidate List and proceed with the basic EMV application selection.

ATM: Ensure that neither the Interac AID nor ASF logic are present.

Note: This logic does not affect the EMV kernel and does not require merchants to recertify their

implementation.

The Impact: In order to avoid fines for non-compliance, merchants should take the necessary action to ensure

their terminal logic is properly configured.

The Timing: September 30, 2019

4

[UPDATE] EMV Fraud Liability Shift Update for JCB and Union Pay CP

The Change: This fraud liability shift update applies to transactions acquired in the U.S. and processed via

Discover Network and PULSE, where a contact chip payment device is utilized and a counterfeit card using

JCB or UnionPay BIN ranges was used to conduct the transaction.

JCB Announces New Effective Date for EMV Fraud Liability Shift

The effective date for the JCB EMV fraud liability shift for counterfeit card transactions in the U.S. using a

contact chip payment device, except at Automated Fuel Dispensers, is now April 17, 2020.

October 2019

Transactions will fall under the EMV fraud liability shift when a UnionPay contact chip payment device is

utilized and a counterfeit card using the UnionPay BIN ranges was used to conduct the transaction at a POS or

ATM, except at an Automated Fuel Dispenser, in the U.S.

October 2020

Transactions will fall under the EMV fraud liability shift when a JCB or UnionPay contact chip payment device

is utilized and a counterfeit card using the JCB or UnionPay BIN ranges was used to conduct the transaction at

an Automated Fuel Dispenser in the U.S.

[REMINDER] EMV Automated Fuel Dispenser (AFD) Liability Shift Update CP

The Program: As of October 2020, the Brands’ (Visa, Mastercard, American Express and Discover) EMV

liability shift for U.S. acquired AFD transactions1 under Merchant Category Code 5542 – Automated Fuel

Dispensers will take effect.

Worldpay is aware of the following PIN Debit networks that have also announced an October 2020 EMV AFD

liability shift date:

Accel MoneyPass AFFN NYCE Interlink PULSE Jeanie Shazam Maestro Star

1 In late 2016 and early 2017, the brands delayed the U.S. domestic AFD liability shift from October 2017 to October 2020.

The Impact: For properly formatted and identified fallback transactions, fraud liability will remain with the

issuer except for Visa lost/stolen transactions. For Visa, merchants may be liable for fallback transactions in

lost-or-stolen cases. Visa advises that, where possible, magnetic stripe transactions on AFD terminals be

directed to pay inside. Also, issuers may decline fallback transactions at a higher rate than chip read

transactions.

AFD Merchants should be working toward EMV capability in order to meet the October 2020 deadline.

Merchants are asked to contact their Relationship Manager as soon as possible to confirm timelines for EMV

certification.

5

[REMINDER] Expiring Certificate Authority Public (CAP) Keys CP

The Program: The EMV standard uses Public Key technology to perform certain functions related to offline

authentication, some aspects of online transactions and offline PIN encryption. Each of the card brands

publish sets of these keys for use with their EMV applications.

Public keys are distributed to acquirers, merchants and solution providers to load into their terminals. Each of

the brands’ key sets is comprised of keys of varying lengths. On an annual basis, EMVCo reviews the keys

and makes recommendations on the expected life span (on a rolling 10-year projection window) of the different

key lengths. Once EMVCo determines a key length is beginning to approach the point where it may become

vulnerable to attacks, they will set that key’s expiration date. While the individual brands are free to set their

own expiration dates, they traditionally follow EMVCo’s advice.

The Change: The following are the active CAP key lengths and their expiration or projected lifespan dates:

UnionPay has announced the expiration date for their 1152-bit key is 12/31/2021

1408-bit keys have expiry date of 12/31/2024

1984-bit keys have an anticipated expiry date of 12/31/2028

The Impact: Once a key expires, it must be removed from the terminal within six months.

Merchants and their solutions providers are advised to begin the process of removing of these keys

Merchants are also reminded that because expiration dates can change they should not be stored on

terminals.

Per UnionPay rules, merchants must not remove the 1152-bit key for UnionPay until the expiration as

outlined above

6

[REMINDER] Contactless Terminal Requirements: All Brands, All Regions CP

The Change: To increase the acceptance of contactless transactions and support more secure transactions,

the card brands have published contactless terminal requirements. Contactless terminals must support

EMV grade contactless technology as outlined by region and effective date.

The Impact: Merchants should work with their hardware vendors to ensure that EMV contactless devices are

properly configured as outlined by the brands.

MASTERCARD

EMV Contactless Support Requirements:

Merchants using a contactless-enabled terminal that supports contact EMV transactions must also

support EMV mode contactless transactions.

Removal of MSD Contactless:

Prior to October 18, 2019, a newly deployed contactless-enabled terminal may support Magnetic Stripe

Mode contactless payment functionality. Mastercard announced support for contactless MSD is optional.

On and after October 18, 2019, all newly-deployed point of sale (POS) terminals that support contactless

acceptance must only support EMV mode contactless transactions. Mag-stripe mode contactless

must not be supported.

Effective April 1, 2023, all POS terminals that support contactless acceptance must only support EMV

mode contactless transactions. Mag-stripe mode contactless must be removed or disabled

Compliance monitoring:

Worldpay has received reports of issuer declines from Mastercard due to invalid CVC3 data from MSD

contactless transactions. Impacted merchants will be notified through their relationship manager.

o Mastercard has identified merchants where declines are a result of the terminal only being able to

support MSD contactless

To address the issue, merchants that have terminals that can only support MSD contactless

may either:

Work with their relationship manager to certify EMV grade contactless for their terminals or;

Consider disabling contactless acceptance on the terminals until EMV contactless certification

can occur in an effort to prevent non-compliance assessments

7

VISA (U.S. Region Reminders)

EMV Contactless Support Requirements:

Merchants currently processing MSD contactless transactions must be able to process EMV grade

contactless transactions.

Merchants unable to support EMV contactless may be subject to a compliance violation

Merchants currently working towards EMV contactless do not have to disable their existing contactless capabilities; however, it is recommended that customers work closely with their Implementations Consultant and Relationship Manager to ensure certification timelines are met.

Removal of MSD Contactless:

For merchants that implement contactless EMV BEFORE APRIL 13, 2019 legacy MSD magnetic-stripe

data (MSD) contactless technology must be disabled by October 19, 2019.

For merchants that certify contactless EMV ON or AFTER April 13, 2019 the terminal must not support the legacy magnetic-stripe data (MSD) contactless functionality

REQUIREMENTS & TIMING BY REGION

United States / Canada

Brand Effective Date Terminal Type and Requirement

Mastercard Effective October 2014 Newly deployed terminals must support EMV contactless functionality

Discover August 23, 2018 Terminals that are being upgraded must also support EMV mode contactless.

Amex December 31, 2018 All POS terminals in the ecosystem must also support EMV mode contactless.

Visa April 13, 2019 (U.S.)

Newly deployed POS terminals or terminals being upgraded must disable

MSD contactless.

Discover October 18, 2019

All newly-deployed point-of-sale (POS) terminals that support contactless

acceptance must only support EMV mode contactless transactions.

Magstripe mode contactless must not be supported.

Mastercard October 18, 2019

All newly-deployed POS terminals that support contactless acceptance must only support EMV mode. Magstripe mode contactless must not be supported.

Visa October 18, 2019 (U.S.) Terminals upgraded to EMV prior to April 13, 2019 must disable MSD contactless by this date

Visa October 19, 2019 (Canada)

All POS terminals in the ecosystem, remove MSD

Merchants with contactless acceptance devices in Canada may no longer support the MSD transaction path. Transactions submitted to Visa in this manner will be declined. Automated Fuel Dispenser (AFD) transactions with a contactless MSD card or mobile device transactions with MSD will continue to be permitted.

Mastercard April 1, 2023 All POS terminals in the ecosystem, remove MSD

8

Asia Pacific

Brand Effective Date Terminal Type

Visa January 1, 2018 All POS terminals in the ecosystem, remove MSD

Discover August 23, 2018 Terminals that are being upgraded

Amex December 31, 2018 All POS terminals in the ecosystem

Mastercard October 12, 2018 All newly deployed POS and CAT terminals (Excludes Mobile POS

(MPOS))

Discover October 18, 2019 All newly-deployed point-of-sale (POS) terminals that support

contactless acceptance must only support EMV mode contactless

transactions. Mag-stripe mode contactless must not be supported. Mastercard October 18, 2019 All newly-deployed MPOS terminals

Mastercard April 1, 2023 All POS and CAT terminals

Latin Caribbean and Caribbean Region

Brand Effective Date Terminal Type

Discover August 23, 2018 Terminals that are being upgraded

Amex

December 31, 2018 All POS terminals in the ecosystem

Discover October 18, 2019 All newly-deployed point-of-sale (POS) terminals that support

contactless acceptance must only support EMV mode contactless

transactions. Mag-stripe mode contactless must not be supported.

Mastercard October 18, 2019 All newly-deployed MPOS terminals

Visa October 19, 2019 All POS terminals in the ecosystem, remove MSD

Mastercard October 20, 2020 All newly-deployed Integrated POS (IPOS) terminals

Mastercard April 1, 2023 All terminals in the ecosystem

Visa April 1, 2025 All mPOS devices, AFDs, ECRs and ATMs in the ecosystem

9

[NEW] Mastercard Introduces New Data Element, Digital Payment Data eComm

The Program: Currently a transaction can contain either the Digital Secure Remote Payment (DSRP)

cryptogram or the Accountholder Authentication Value (AAV), not both. Today the value that is being dropped

is the DSRP cryptogram, which results in the token not being authenticated.

The Change: Mastercard is introducing a new data element, Digital Payment Data, that will allow transactions

to contain both values (DSRP and AAV) providing for the authentication of both the cardholder and the token.

The Impact: Merchants will need to make changes to support the new data element. Mastercard will continue

to support transporting the DSRP cryptogram in the UCAF field for a period of time (TBD) while acquirers and

merchants migrate to the new digital payment data field.

Worldpay from FIS specifications are being updated to support the new data element.

[NEW] Mastercard Introduces Product Codes to Support Humanitarian

Organizations in Canada CAN

The Program: Previously most humanitarian aid organizations did not have electronic payment options and

instead distributed financial aid via cash payments or in-kind goods like food or water.

The Change: Mastercard is introducing two new prepaid products to assist humanitarian aid organizations in

delivering financial assistance digitally in the Canada region.

The Impact: In order to distribute financial aid through the prepaid product channels below, aid organizations

will need to work with licensed issuers.

DWF – Debit Mastercard Humanitarian Prepaid

MWF – Mastercard Humanitarian Prepaid

These product codes will be added to the following Canada interregional and intracountry interchange

programs:

IRD ZX – Interregional Humanitarian Standard

IRD ZX – Intracountry Humanitarian Standard

Mastercard®

10

[NEW] Mastercard Introduces New Pre-Authorization Fee in Canada CAN

The Change: MasterCard will introduce a new Pre-Authorization Fee in Canada on fully or partially approved

authorizations identified as a pre-authorization.

The Impact: Merchants will receive a fee of 0.05% of the authorization amount with a minimum fee amount of

USD $0.01.

The Timing: November 4, 2019

[NEW] Mastercard Assessment Fee Update in Canada CAN

The Change: The MasterCard Assessment Fee (0.08%) in Canada will begin to apply to refunds.

The Impact: Merchants will see the Assessment fee applied to their refund transactions.

The Timing: November 1, 2019

[REMINDER] Mastercard Announces Support for Electric Vehicle Charging CP

The Program: Mastercard has announced the ability for merchants to support electric vehicle charging

services under any existing merchant category code the merchant is using to conduct current operations.

The Change: This solution is effective immediately; however, it is a temporary solution and will expire when

the broader electric vehicle charging service is launched.

Current criteria:

Must not be one of the following MCCs:

o 5541—Service Stations (with or without Ancillary Services)

o 5542—Fuel Dispenser, Automated

Terminal should support any of the following input methods:

o Magnetic stripe

o Contact chip

o Contactless chip

Terminal should support online authorization

11

[REMINDER] Mastercard Revises Standards – Electronic Commerce Transactions at

Automated Fuel Dispensers (AFD) eComm

The Program: Merchants selling automotive fuel are offering consumers the ability to make “in-app”

payments using the merchant’s digital application offering.

The Change: Mastercard is supporting this new acceptance channel by expanding the transaction processing

options for AFDs to include ecommerce transactions.

The Impact: AFD transactions are to be formatted as follows:

MCC 5542 (Automated Fuel Dispenser)

Transaction Category Code (TCC)

R = All Other Merchants Face to Face

U = Cardholder-Activated Terminal Level 1 or 2

T = All Other Non–Face to Face Transactions

Cardholder Activated Terminal (CAT) level indicator

CAT 1 (Automated Dispensing Machine) when a PIN is entered

CAT 2 (Self-Service Terminal) when no cardholder verification method (CVM) is used

CAT 6 (Electronic Commerce) plus other ecommerce transaction indicators

All existing Standards applicable to AFD transactions, including requirements related to the support of pre-

authorizations, partial approval responses and advice messages will apply to in-app fuel purchases.

Chargeback Impact

In app transactions are e-commerce transactions and all fraud related chargeback rights applicable to

an e-commerce transaction will therefore apply, including but not limited to, all chargeback provisions

related to the use of Mastercard SecureCode and Mastercard Identity Check.

Authorization-related chargeback rights that currently apply to AFD transactions will apply to in-app

fuel payments. Issuers will not be able to use message reason code 4808 (Authorization-related

Chargeback) to charge back an AFD transaction occurring in the U.S. region that is identified as an e-

commerce transaction

12

[REMINDER] Mastercard Announces Authentication Enhancements for Mastercard

Identity Check Program eComm

The Program: Mastercard is labeling their 3DS 2.0 solution as Identity Check. Identity Check will replace

SecureCode by December 2019. Mastercard Identity Check builds upon the existing Mastercard SecureCode

program that uses the current 3D-Secure 1.0 protocol. The same transaction liability structure, interchange

program rates and fees, and authorization and clearing indicators will continue to apply.

The Change: Mastercard has announced that customers who enroll in the Mastercard Identity Check program

using EMV 3-D Secure (3DS) will use the Second Secure Payment Application (SPA2) for Accountholder

Authentication Value (AAV) generation. SPA2 is the enhanced version of the AAV, Universal Cardholder

Authentication Field (UCAF), data field that was announced and implemented in October 2018 under Identity

Check 3DS 2.0.

Mastercard customers still on the legacy 3DS platform (SecureCode 3DS 1.0) will continue to use the current SPA1 algorithm as SPA2 is not supported for 3DS 1.0 transactions. Identity Check will completely replace SecureCode by December 2019.

The Timing: October 1, 2019

[REMINDER] Mastercard Revises Standard for Recurring Payment

Transactions CNP/eComm

The Change: Mastercard will revise its Standards to clarify that Point of Sale [POS] Data, subfield POS

Cardholder Presence, complies with the appropriate values for the first transaction of a recurring payment

series for e-commerce transactions.

Indicating a Recurring Payment

1. For the first transaction of a recurring payment series, a value of one of the following:

0 (Cardholder present)

1 (Cardholder not present, unspecified)

2 (Mail/facsimile order)

3 (Phone/ARU order)

5 (Electronic order [home PC, Internet, mobile phone, PDA])

2. For any subsequent recurring payment transaction, a value of 4 (Standing order/recurring transactions)

REMINDER: For subsequent recurring payment transactions, the transactions must follow the credential on file

requirements (e.g, POS Entry Mode of COF).

The Timing: January 2020

13

[NEW] Mastercard Introduces New SecureCode 3DS 2.0 Fee eComm

The Change: MasterCard will introduce a new SecureCode 3DS 2.0 fee in the U.S.

The Impact: Merchants utilizing SecureCode 3DS 2.0 will be assessed a fee of 0.01% for each transaction

submitted for authentication. The fee will be calculated on the amount of the transaction submitted for

authentication.

The Timing: October 1, 2019

[NEW] Mastercard Excessive Authorization Attempts Fee CP/CNP/eComm

The Change: In an effort to curb card testing and discourage authorizing a card after a decline has been

received, Mastercard is introducing a new Excessive Authorization Attempts fee in the United States and

Canada.

The Impact: The Excessive Authorization Attempts fee of $0.10 will be assessed on each authorization

attempt submitted after receiving 20 declines on the same card number for any dollar amount within the same

24-hour period. The new fee will also be assessed to the $0 account verification transactions.

[NEW] Mastercard Introduces Network Expansion Assessment Fee CP/CNP/eComm

The Change: Mastercard has introduced the Network Expansion Fee that will apply to all Gross Purchase

Acquiring Volume.

The Impact: This incremental assessment of 0.25% will apply to all Gross Purchase Acquiring Volume for

merchant locations located in Puerto Rico and the U.S. Virgin Islands.

The Timing: The Network Expansion Assessment Fee will be effective December 1, 2019.

14

[NEW] Mastercard Modifies UCAF Interchange Rates eComm

The Change: MasterCard will modify the rates for the following UCAF interchange programs:

Program

Merchant UCAF Core

Full UCAF Core

Merchant UCAF Enhanced

Full UCAF Enhanced

Merchant UCAF World

Full UCAF World

Merchant UCAF World High Value

Full UCAF World High Value

Merchant UCAF World Elite

Full UCAF World Elite

Merchant UCAF Consumer Debit

Full UCAF Consumer Debit

Merchant UCAF Consumer Prepaid

Full UCAF Consumer Prepaid

The Impact: Merchants with eligible transactions that participate in Mastercard SecureCode 3DS may see an

increase in UCAF interchange rates.

[NEW] Mastercard Revises Interregional Interchange Rates for Refunds CP/CNP/eComm

The Change: MasterCard will modify the existing interchange fee program rates that apply to the following

interregional programs for refunds:

Program

Consumer Merchant UCAF

Consumer Electronic

Consumer Electronic Card

Consumer Standard

Consumer Full UCAF

Consumer Premium Electronic

Consumer Premium Full UCAF

Consumer Premium Merchant UCAF

Consumer Premium Standard

Consumer Super Premium Acquirer Chip

Consumer Super Premium Electronic

Consumer Super Premium Full UCAF

Consumer Super Premium Merchant UCAF

Consumer Super Premium Standard

Commercial Electronic Card

Commercial Standard

Commercial Purchasing Standard

Commercial Premium Standard

The Impact: Merchants with eligible refund transactions may realize a decrease in interchange fees for these

programs.

15

[NEW] Mastercard Eliminates International Commercial Interchange

Programs CP/CNP/eComm

The Change: MasterCard is eliminating the following interchange programs:

Interregional Commercial Purchasing Large Ticket

Interregional Commercial Purchasing Data Rate II

Intraregional Commercial Purchasing Large Ticket

Intraregional Commercial Purchasing Data Rate II

The Impact: With the elimination of the above interchange programs, merchants may see a shift to the

following programs:

Current Interchange Program to be Eliminated Effective October 18, 2019

Interregional Purchasing Large Ticket Interregional Purchasing Standard

Interregional Purchasing Data Rate II

Intraregional Purchasing Large Ticket Intraregional Purchasing Standard

Intraregional Purchasing Data Rate II

Interregional programs applies to merchants in the U.S, Canada, LAC & AP

Intraregional programs applies to merchants in the AP & LAC Regions

[REMINDER] Mastercard Introduces New Nominal Amount Authorization

Fee CNP/eComm

The Program: Mastercard is introducing a new program, Transaction Processing Excellence (TPE), to

promote correct processing behavior.

The Change: As part of TPE, Mastercard will be introducing the Nominal Amount Authorization fee that will be

assessed on transactions where the merchant conducted a $1.00 status check instead of using the non-

financial Account Status Inquiry transaction type.

The Impact: This Nominal Amount Authorization fee will apply only to Card-Not-Present transactions for

$1.00 USD or less. The fee amount of $0.045 will be assessed for each approved nominal amount transaction

with a subsequent reversal. Merchants should use Account Status Inquiry (ASI) tran types for account status

checks

The Timing: January 2020

16

[REMINDER] Mastercard Updates Symbol Branding on Physical and

Digital Cards CP/CNP/eComm

The Change: The full color (red and yellow) Mastercard Brand Mark will be featured on cards without the

word “mastercard”. This will be referred to as the “Mastercard Symbol”.

Note: The transition to Mastercard Symbol branding will not apply to the use of Mastercard branding in

marketing materials.

The Impact: Cardholders may begin to present cards with the Mastercard Symbol without the word

“mastercard” at merchant locations.

The Timing: November 1, 2019

17

[REMINDER] Mastercard Introduces Transaction Integrity Classifications

(TIC) for Interchange Rates CP/CNP/eComm

The Program: Mastercard has introduced Transaction Integrity Classification to provide a mechanism to

evaluate the safety and security of a transaction. The intent of the Transaction Integrity Classification (TIC)

indicator is to assess both the validity of the card and the cardholder.

The Change: MasterCard will review transaction characteristics to assess the validity of the card and the

cardholder and will provide these results to issuers to assist them in making authorization decisions.

Merchants will be required to receive the TIC indicator value in the authorization response message and to

return this value in the clearing message in order to qualify for the appropriate interchange. The TIC indicator

will be mandatory for specific interchange programs in the U.S. region.

Mastercard will be mandating the use of the TIC value in all settlement messages, chargebacks and arbitration

chargebacks. Mastercard may override interchange rates based on the TIC indicator in a future Release.

Valid Values for the Transaction Integrity Class

Card and Cardholder Present EMV/Token in a Secure, Trusted Environment A1

Card and Cardholder Present EMV/Chip Equivalent B1

Card and Cardholder Present Mag Stripe C1

Card and Cardholder Present Key Entered E1

Card and Cardholder Present Unclassified U0

Card and/or Cardholder Not Present Digital Transactions A2

Card and/or Cardholder Not Present Authenticated Checkout B2

Card and/or Cardholder Not Present Transaction Validation C2

Card and/or Cardholder Not Present Enhanced Data D2

Card and/or Cardholder Not Present Generic Messaging E2

Card and/or Cardholder Not Present Unclassified U0

REMINDERS

Mastercard has delayed the use of the TIC value for interchange qualification until at least April 2020

Merchants in the process of making updates to support the MC TIC should continue their efforts to ensure they are ready when Mastercard implements these changes

Specifications have been updated to support the TIC indicator in both authorization response and clearing

messages between merchants and Worldpay

System updates are being completed at Worldpay to ensure proper interchange qualification based upon the TIC indicator received

18

[REMINDER] Mastercard Claims Manager (MCM) for Disputes CP/CNP/eComm

The Program: Mastercard announced plans to make changes to their disputes resolution process for its

network participants during the second half of 2019, followed by additional changes in April 2020.

Mastercard is changing the Dispute Resolution process to address the following concerns:

Significant increase in improper/invalid chargebacks and representments

Increase in chargebacks under $25 (+15%)

Significant increase in non-fraud disputes

Chargeback timeframes and processes haven’t changed in more than 20 years

To reduce the number of improper compliance cases

For 2019 Worldpay from FIS will enhance systems to facilitate real-time processing with Mastercard. With

these enhancements merchants will be able to self-serve and the following dispute deliverables will be

updated:

Reporting updates

Dispute Reports

Dispute Notices (DMMD version)

Updating DM Activity File to include Mastercard dispute data

Core iQ updates

Questionnaire added for Mastercard

Population of the Case Status and Ownership field

One new action code (RRER- Retrieval Request Refusal)

What is not changing with the Mastercard Dispute Resolution Initiative?

Timeframes for merchants to respond

o 45 days to represent a chargeback

o 30 days to respond to a retrieval request

The dispute process will remain chargeback/representment/second chargeback/pre-arb/arb until 2020.

The Timing: These changes are scheduled to go into effect on October 28, 2019 (core platform). Please visit www.vantiv.com/disputes for additional dispute program information.

19

[NEW] Visa Revises Emerging Segment Interchange Program in Canada CAN

The Change: Visa has announced that merchants under MCC 8661 (Religious Organizations) will become

eligible for the Emerging Segment interchange program in Canada.

The Impact: Qualifying transactions under MCC 8661 will be eligible for the following interchange programs:

Interchange Program

Emerging Segment Consumer Credit

Emerging Segment Consumer Infinite

Emerging Segment Consumer High Net Worth

Emerging Segment Business Credit

Emerging Segment Infinite Business

Emerging Segment Consumer Prepaid

Emerging Segment Commercial Prepaid

Emerging Segment Debit

[NEW] Visa Introduces New Debt Repayment Interchange Program in Canada CAN

The Change: Visa is introducing a new Debt Repayment interchange program in Canada for eligible loan

payment transactions processed on consumer and business debit cards.

The Impact: Transactions will be eligible for the new interchange program when the minimum transaction

requirements below are met:

Transaction is card present and card not present

Merchant must be under one of the following MCCs

o 6012

o 6051

Accepted card type must be a consumer or business debit card

Debt Repayment Indicator must be submitted with all eligible transactions

Visa

20

[NEW] Visa Introduces New Merchant Category Code (MCC) for

Electric Vehicle Charging CP/CNP/eComm

The Change: In an effort to improve acceptance channels Visa is introducing a new MCC, 5552 - Electric Vehicle Charging, to support transactions associated with Electric Vehicle charging.

The Impact: Eligible merchants that primarily provide electric vehicle charging services may begin to use the new 5552 MCC.

[REMINDER] Visa Introduces Deferred Authorization Indicator CP

The Program: When a card present merchant’s system experiences a communication issue and an online

authorization is not able to be obtained, a merchant will hold onto the authorization message and submit it

when the system is back online.

The Change: In an effort to improve authorization approvals, Visa is introducing a new indicator to uniquely

identify transactions that are stored and submitted once their system is back online.

The Impact: Visa will require support of a new authorization indicator (existing field 63.3) to identify deferred

(store and forward) authorizations (value of 5206).

o Deferred authorizations must be obtained within one (1) day of the transaction date*

* Transaction date is the date when the goods/services were provided. Visa understands there will be exceptions (e.g., natural disasters, etc.) where the submission of the deferred authorization may extend beyond one day.

o MCCs 4111 (Local and Suburban Commuter Passenger Transportation including Ferries), 4122

(Passenger Railways) or 4131 (Bus Lines) must obtain an authorization within four (4) days of the

transaction date

The Timing: Visa has revised the effective dates for support of the Deferred Authorization Indicator:

April 16, 2021 – mandatory for merchants

21

[REMINDER] Visa Introduces New Merchant Category Code 9406 – Non U.S.

Government Owned Lotteries CP/CNP/eComm

The Program: A new merchant category code (MCC) of 9406 [Government Owned Lotteries, Non-U.S. Only]

will be created for non-U.S. government-owned lotteries. This MCC is intentionally separate from MCC 7800

(U.S. Classification).

The Impact: Qualifying non-U.S. lottery merchants that sell tickets will be able to reclassify their gambling

transactions from MCC 7995 to the new MCC 9406.

Merchants using MCC 9406 will not be required to include the quasi-cash indicator, and the MCC will not be considered high-brand risk. If a non-U.S. lottery merchant does not meet the criteria for MCC 9406, they must continue to be classified under MCC 7995.

POS Environment Ticket Seller Terminal Type MCC

Card Present Retailer (e.g. grocery) Retailer 5411 – Grocery Stores and Supermarkets

Card Present Retailer or Lottery Lottery Provided MCC 9406

Card Absent Lottery Lottery App/website MCC 9406

Registration is not required to participate in the new MCC. Visa will monitor volumes and will assess non-

compliance assessments to ineligible merchants.

22

[REMINDER] Visa Expands Estimated, Initial, and Incremental Authorization

Processing CP/CNP/eComm

The Program: Under the Visa rules, merchants are required to obtain an authorization only for the final

transaction amount. However, exceptions exist and many merchant categories are permitted to obtain

estimated, initial, and incremental authorizations when the final amount is unknown.

The Change: Visa will expand the merchant types that are eligible to send estimated, initial, and incremental authorizations to the following merchant category codes:

5411 – grocery stores and supermarkets, for card-not-present transactions only

5522 – electric vehicle charging

7523 – parking lots, parking meters, and garages

Merchants will have the ability to send an estimated authorization, followed by one or more incremental

authorizations when adding additional goods or services to the same transaction. Merchants must disclose to

the cardholder that the initial authorization amount is for an estimated amount and that there may be

subsequent authorizations.

Reminders:

The estimated authorization indicator must be sent in authorizations for transactions where the final amount is unknown.

The incremental authorization indicator must be included to identify an incremental authorization transaction.

The transaction identifier value from an estimated or initial authorization transaction must be retained and returned in the corresponding incremental authorization transactions.

If the estimated amount authorized is greater than the final amount (settlement), a partial authorization reversal must be initiated to bring the final amount in-line with the total amount authorized.

MCC 5552 (Electric Vehicle Charging) and 7523 (Parking)

Merchants must disclose to the cardholder that the initial authorization amount is for an estimated amount and

that there may be subsequent authorizations.

MCC 5411 (Grocery Stores and Supermarkets)

An incremental authorization is not necessary if the final amount of the transaction is within 15% of the original

authorized amount. However, if an incremental authorization is performed, the 15% rule no longer applies.

The 15% authorization to clearing tolerance only applies to card-not-present transactions.

All card-present transactions must send a single authorization for the final amount to be settled as it exists today (one authorization to one settlement).

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[REMINDER] Visa Updates Activation Date for EMV-3D Secure in the U.S. eComm

The Program: EMV-3D Secure (formerly 3DS 2.0) participants should be aware of the phased approach for

chargeback protection for merchant-attempted transactions.

The Change: The activation date for EMV-3D Secure has been changed to August 31, 2020 in order to align

with other improvements and regional requirements. Visa will continue to test additional protocol alternatives

to help with overall decisioning. The activation dates in other regions remain unchanged.

Additionally, the activation date for e-commerce fraud-related dispute protections are extended to merchants

using EMV 3DS from August 15, 2019 to August 31, 2020. All other regions remain unchanged.

EMV-3D Secure Merchant-attempted to authenticate transactions will begin to have chargeback

protection. These transactions will be identified with Electronic Commerce Indicator = 06.

EMV-3D Secure Issuer-authenticated transactions will receive fraud-related chargeback protection or

when an EMV-3D Secure issuer is temporarily not available and Visa stands in.

[REMINDER] Visa Requirements for Token Authentication Verification Value

(TAVV) and Dynamic Token Verification Value (DTVV) eComm

The Program: E-commerce and card-on-file tokenization follow similar principles and implementation as token

application-based e-commerce, with the existing 3-D Secure (3DS) cardholder authentication verification value

(CAVV) data containing the token validation cryptogram payload.

The Change: Token authentication verification value (TAVV) and dynamic token verification value (DTVV)

cryptograms are generated by an approved entity, such as Visa Token Service, then passed to the merchant

via the token requestor. The merchant must then submit the unchanged TAVV or DTVV in the authorization

request.

The Impact: Merchants must ensure the following TAVV and DTVV cryptogram requirements are being

followed:

The TAVV and DTVV cryptograms must be new and unique for each authorization request.

The TAVV and DTVV cryptograms are a one-time use within the authorization window.

The TAVV and DTVV must not be stored beyond the authorization request.

The TAVV, DTVV, and electronic commerce indicator (ECI) values provided by the token requestor

must be unchanged when submitted in the authorization request message.

A resubmitted or stale TAVV or DTVV may result in a declined authorization request.

Merchant-initiated transactions must follow the merchant-initiated transaction framework.

Transactions may be declined if the proper transaction data is not sent.

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[REMINDER] Visa Updates Requirements for Payment Facilitators and

Qualified and Registered Marketplaces CP/CNP/eComm

The Change: Effective October 2019 Visa will require payment facilitators (PFs), sponsored merchants and

marketplaces to be identified uniquely using new transaction level identifiers. The identifiers will help monitor

the activity of sponsored merchants that operate under a payment facilitator (PF) and transactions that occur at

a registered marketplace.

The Impact: Payment facilitators (PFs), sponsored merchants and marketplaces identifiers must be included

in all transactions, and will result in more effective monitoring of the activity of sponsored merchants that

operate under a payment facilitator (PF) and transactions that occur at a registered marketplace.

Payment Facilitators

The business identifier for a PayFac will be assigned by Visa when the acquirer registers the entity as a third

party agent, as required, with Visa.

For PayFacs already registered with Visa, the identifier was provided in the confirmation letter at the time of registration (e.g., 100XXXXX).

Worldpay must ensure that the sub-merchant identifier is assigned; it must be a unique value for each sponsored merchant. The indicator may be numeric or alpha-numeric and up to 15 characters.

o This value can be the same sub-merchant ID currently being used for Mastercard transactions.

Payment Facilitators will still be required to format the merchant name field with the PayFac prefix * sub-merchant name.

Marketplaces

The identifier requirements only apply to registered marketplaces with annual Visa volume of USD 5 million or

more, or at the direction of Visa. The marketplace identifier will be 8 characters.

Effective October 2018, Visa introduced a specific merchant category code (MCC) dedicated to marketplace

transactions described as follows:

MCC 5262–Marketplaces Entities classified with this MCC are online marketplaces that accept Visa and bring

together cardholders and retailers on an e-commerce website or mobile application,

under a single brand used to identify itself to cardholders. These entities must meet

all Visa qualification requirements and be registered with Visa as a marketplace.

MCC 5262 must be used when the Marketplace sells a variety of goods and or

services.

Marketplaces offering the same type of goods and or services from multiple retailers or service providers are

not eligible to use the new MCC. The marketplace must use the MCC that most accurately describes their line

of business such as a marketplace selling only shoes should use MCC 5661 (Shoe Stores).

25

[REMINDER] Visa Updates Merchant Chargeback and Fraud Monitoring

Programs CP/CNP/eComm

The Program: VCMP and VFMP identify acquirers of merchant outlets that generate a disproportionate

volume of disputes or fraud relative to their sales volume. Typically, entities identified by these programs will

have a dispute-to-sales count ration or a fraud-to-sales amount ratio that is at least four to five times greater

than the Visa system average.

The Change: Effective October 1, 2019 Visa will reduce fraud and dispute thresholds for the Visa Fraud

Monitoring Program, the Visa Chargeback Monitoring Program and the Visa Acquirer Monitoring Program.

Visa will lower the VCMP and VFMP standard thresholds from 100 to 90 basis points and VAMP thresholds

from 100 to 75 basis points.

The Impact: Merchants are strongly encouraged to review their fraud and dispute mitigation plans. Any

merchant currently in one of the identified programs will receive an update on Visa’s plan during this transition.

Visa also recommends that merchants carefully review business practices used for free trial periods

and/or recurring billing models to ensure the terms and conditions are properly disclosed to consumers

and operate in compliance with the Visa rules.

Program Threshold Criteria

VCMP Standard Program 100 or more in dispute count and

0.9 percent or higher ratio of dispute count-to-sales count

VCMP Excessive Program 1,000 or more in dispute count and

1.8 percent or higher ratio of dispute count-to-sales count

VFMP Standard Program USD 75,000 or more in fraud amount and

0.9 percent or higher ratio of fraud dollar-to-sales dollar amount

VFMP Excessive Program USD 250,000 or more in fraud amount and

1.8 percent or higher ratio of fraud dollar-to-sales dollar amount

VAMP Standard Program USD 500,000 or more in fraud amount and/or 750 or more in dispute count and

0.75 percent or higher ratio of fraud dollar-to-sales dollar amount / dispute count-to-sales count

Visa will provide Worldpay with monthly Early Warning notifications when merchants do not exceed the

program standard thresholds but have met the following qualifications:

Early Warning Type Qualification Criteria

VCMP Early Warning 75 or more disputes and

0.65 percent or higher ratio of dispute count-to-sales count

VFMP Early Warning USD 50,000 or more in fraud amount and

0.65 percent or higher ratio of fraud dollar-to-sales dollar amount

VAMP Early Warning USD 250,000 or more in fraud amount and/or 375 or more in dispute count and

0.45 percent or higher ratio of dispute count-to-sales count / fraud dollar-to-sales dollar amount

26

[REMINDER] Discover Changes to ProtectBuy Liability Shift CNP/eComm

The Program: Discover has made updates to their Operating Regulations and their Disputes Rules manuals

regarding changes to the ProtectBuy liability shift.

The Change: Changes in the verbiage regarding the ProtectBuy liability shift are outlined as follows:

If the Merchant uses Discover ProtectBuy to initiate a ProtectBuy Authentication Request for a Card Not

Present Card Sale and receives “Unable to Authenticate” as the ProtectBuy Authentication Response, the

Card Sale may be subject to Dispute.

Three new eligible MCCs were added:

Card Not Present Card Sales by Merchants operating in the following MCCs that use Discover ProtectBuy and

receive a ProtectBuy Authentication Response of “Authentication Successful” or “Authentication Attempted”

may be subject to Dispute:

6540 – Non-Financial Institutions (e.g. stored value card purchase/load)

7801 – Government Licensed On-Line Casinos (e.g. On-Line Gambling)

7802 – Government Licensed Horse/Dog Racing

[REMINDER] Discover Revises Arbitration and Representment

Timeframes CP/CNP/eComm

The Change: Discover is changing the timeframe to initiate a dispute arbitration request from 30 to 10 days

from the notice date of a Pre-Arbitration Inquiry decision.

The timeframe for the Acquirer/merchant to initiate representment is being reduced from 45 to 30 days after

the Chargeback Dispute Notice issue date.

The Impact: Merchants should be aware of the changes and update processes to ensure adherence with the

new timeframes.

Discover®

27

[REMINDER] JCB Expands Existing BIN Ranges CP/CNP/eComm

The Change: JCB has announced they are expanding their BIN ranges.

The Impact: Merchants and partners should ensure all point of sale devices are able to identify, accept, and

process the expanded BIN ranges.

New JCB 8-Digit BIN ranges

Start End Issuing Network

30880000 30949999 JCB

30960000 31029999 JCB

31120000 31209999 JCB

31580000 31599999 JCB

33370000 33499999 JCB

The Timing: The new BINs are expected to be in market October 2022.

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[REMINDER] American Express Announces Two New Error Codes CP/CNP/eComm

The Change: American Express has announced two new error codes:

Error Code 2077

Online Travel Agencies (OTAs) set maximum transaction limits for their clients, e.g. hotels. If the transaction

amount exceeds the limit agreed between the OTA and their client, the transaction will decline.

The client will then need to adjust the amount to be within their assigned limit and resubmit the auth request. If

the client attempts to force the transaction, then the transaction will reject and Amex will send them a letter.

Error Code 2078

To reject transactions that do not have proper authorization information included. This means transactions that

have been forced or no approval was requested or obtained.

Triggering this Error Code will not result in a Non-Compliance Fee. The purpose of the reject is to stop

merchants from forcing transactions through submission without an approved authorization.

©2019 FIS and/or its subsidiaries. All Rights Reserved.

Worldpay (UK) Limited (Company No. 07316500 / FCA No. 530923), Worldpay Limited (Company No. 03424752 / FCA No. 504504), Worldpay AP Limited

(Company No: 05593466 / FCA No: 502597). Registered Office: The Walbrook Building, 25 Walbrook, London EC4N 8AF and authorised by the Financial

Conduct Authority under the Payment Service Regulations 2017 for the provision of payment services. Worldpay (UK) Limited is authorised and regulated

by the Financial Conduct Authority for consumer credit activities. VAT number: 991 2802 07

Worldpay B.V. has its registered office in Amsterdam, the Netherlands (Handelsregister KvK no. 60494344). WPBV holds a licence from and is included in

the register kept by De Nederlandsche Bank, which registration can be consulted through www.dnb.nl.

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